Islamabad: In good news, the government has been successful in recovering Rs2.12b from Chinese firm Songfang Electric Corporation Limited (SECL) reported a local newspaper.
The 525MW power plant which was supposed to be setup in Chichoki Mallian, Punjab by SECL faced numerous delays and failed due to bureaucratic hurdles, which was then axed in 2015 after a period of seven years.
Rs2.12b was paid on account of Engineering Procurement and Construction (EPC) contract in 2008 to SECL. An agreement was inked between SECL and Northern Power Generation Company (NPGC) in April 2008 to setup the plant at a total cost of $345.5m.
The government paid mobilization advance equivalent to 10pc in August 2008. The project faced numerous delays and work wasn’t initiated till 2015, which forced the Pakistani government to cancel the project.
After the cancellation, the government sought the recovery of the mobilization advance paid to SECL, which was received from the latter on the 26th of this month
